Tobacco excise

Tobacco means tobacco leaf that has been subjected to any process other than curing the leaf as stripped from the plant.

Cigarettes, cigars and loose tobacco are excisable goods if they're produced or manufactured in Australia. If you:

manufacture excisable tobacco you need a licence from the ATO, even if the tobacco is intended for personal use

deliver excisable tobacco into the Australian domestic market (home consumption) you must lodge an excise return and pay excise duty.

Tobacco seed, plant and leaf are not excisable goods, but you need a licence to produce or deal in them even if they are intended for personal use, and you need ATO permission to move them.

Licences to grow tobacco are subject to strict rules and conditions and are rarely granted. Currently there is no tobacco manufacture occurring in Australia and no-one is licensed to grow tobacco for commercial sale or personal use.

Excise duty is a tax on tobacco products (excisable goods) produced or manufactured in Australia. If you manufacture or store excisable goods you must hold an appropriate excise licence, and report to us and pay duty on goods delivered into the Australian domestic market.

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We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.